The US Dollar maintains the upward direction after retreating to the support at 106.50 earlier this week.
A step above the multi-month down-trend on Monday turned out to be a false break-out—the Pound is already trading below 1.61, which was supposed to act as a new floor.
As suspected, the Oct 6-15 up-trend was no longer a viable support and the bears pushed the price beneath it.
As it turned out, the 55-day SMA at 0.9390 was enough to prevent further decrease in the value of the Buck.
USD/JPY spiked through the demand area at 106.90/60, but in the end the pair managed to recuperate and settle above the 55-day SMA and 38.2% retracement level.
After violating the down-trend and reaching the next resistance at 1.6185 (weekly R1), the currency pair returned back to 1.61.
Yet another attempt of the Euro to extend a recovery from 1.25 was stopped by the 23.6% retracement and 55-day SMA at 1.2850.
NZD/USD keeps attacking the resistance at 0.7970, formed by the four-month down-trend, monthly pivot point and 23.6% retracement of July-October decline.
USD/CAD is currently undergoing a bearish correction after a test of 1.14.
Neither the bulls nor bears are able to take control of the pair—it keeps oscillating within the range created by the 2014 low from the downside and by the 23.6% Fibo retracement from the upside.
Despite EUR/JPY breaking the two-month down-trend that connects the Sep 19 and Oct 9 peaks, the pair is still facing strong selling pressure.
USD/CHF failed to gain a foothold above 0.9450—it has already nullified the progress made during the last two days of the previous week.
Despite the absence of any notable levels USD/JPY came under strong selling pressure and as a result, retreated back to a cluster of supports at 106.80/60.
Although the four-month down-trend at 1.61 was supposed to keep the downward momentum intact, yesterday it was breached to the upside.
EUR/USD respected an accelerated up-trend that connects the lows seen on Oct 6 and 15, and the pair is now moving higher.
Gradual; however, insistent, this is how we could describe the current NZD/USD advance towards the psychological level at 0.80.
The US Dollar slid below the weekly PP at 1.1287, after the week, when a new this year's high was set at 1.1386.
AUD/USD hovers in more or less the same trading range where it did in the last week, namely around the 0.8750 level.
The EUR/JPY cross opened above the last week's closing price yesterday; however, today it dipped towards July Low at 136.37.
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The first half of October was marked with poor performance of the US Dollar against the Franc, but now the currency pair managed to settle above 0.9450—a positive sign for the bulls.
Not only did the demand between 106 and 105.50 refuse to let USD/JPY to retreat more, but it also initiated a rally that resulted in a breach of an important resistance at 106.70.
The Cable keeps trading right beneath the four-month down-trend, meaning the downside risks are currently elevated.
Although there is an immediate resistance level at 1.2786, represented by the monthly pivot point, the supply between 1.29 and 1.2850 is more likely to act as a ceiling this week.